Page 94 - RusRPTJun21

8.1.4 NPLs
In April, there was a decrease in overdue debts of borrowers, both corporate (-RUB5bn , or 0.2%) due to rescheduling of claims on problem loans to large banks, and retail (-RB2bn , or 0.3%).
Banks have continued to increase their investments in debt securities (RUB277bn , or 1.7%), mainly OFZs. In April 2021, the Ministry of Finance of Russia, within the framework of auctions for the placement OFZ, attracted funds in the amount of about RUB490bn and Russian banks bought more than 85% of these.
8.1.5 Liquidity, NIMs & CARs
The total volume of ruble liquid assets of the banking sector (cash, claims to the Bank of Russia and non-pledged market collateral) in April increased by RUB0.5 trillion to RUB15.9 trillion, mainly due to an increase in funding, which resulted in release of OFZs pledged earlier on repo transactions. The volume of liquidity is at a fairly comfortable level and one third covers the total funds of clients.
In addition to liquid assets, banks can raise funds from the CBR. The sector's net profit in April amounted to RUB202bn, which is in line with the annualized return on capital - 22% (in March, RUB205bn and 22.7%). Number of profitable banks decreased to 221 from 248, but the share of profitable banks in the sector's assets at the end of four months of 2021 amounted to 97%.
94 RUSSIA Country Report June 2021 www.intellinews.com